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Retention bonus does not open additional severance entitlements

25/05/2019

Delen

Under Belgian law compensation in lieu of notice is computed on the employee's annual salary, which includes any contractual or statutory salary item. In a recent decision, the Brussels' employment tribunal (French-speaking section) held that a discretionary retention bonus is not part of the salary serving as computation basis of the compensation in lieu of notice. In the case at hand, the employee claimed to include the retention bonus (approximately 100,000 euros inclusive of holiday pay), which was awarded and paid less than 12 months prior to employment termination, into the computation basis of the compensation in lieu of notice, inflating the latter with another 220,000 euros. The employment tribunal held that such discretionary retention bonuses are not to be considered as salary opening additional severance entitlements. ■